A Company Procedure Whereby the fiRm Maintains a Relatively High

question 380

Multiple Choice

A company procedure whereby the firm maintains a relatively high ratio of current assets to sales is called a _____ policy.

• A) Cash-out.
• B) Restrictive.
• C) Low inventory.
• D) Flexible.
• E) Stock-out.

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Definitions:

Unearned Rent Revenue

Income received by a landlord for rent that has not yet been earned because the rental period has not yet occurred.

Income Statement

A financial report that gives a summary of a company's revenues, expenses, and profits/losses over a specific period, highlighting operational performance.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and shareholders' equity at a specific point in time, showing the company's financial position.

Rental Income

Rental income refers to the revenue received from leasing property or other assets to tenants.